Bitcoin (BTC) has experienced a slight decline of just over 2% this week, but the fact that buyers have prevented the price from falling below $65,000 is a positive sign. This has led to a recovery, pushing Bitcoin above $67,500 on October 27th. Analysts at Kraken believe that as long as Bitcoin remains above $66,500, the trend should remain positive.
However, not everyone is optimistic about Bitcoin’s short-term prospects. Crypto analyst Luca suggests that Bitcoin could see another drop to $60,000 before a local bottom is confirmed.
Several analysts have been anticipating an altcoin season, where other cryptocurrencies rally after Bitcoin’s dominance reaches 60%. Pseudonymous trader Willy Woo believes that while an altcoin season will occur, it will be weaker with each cycle compared to the great alt bubble of 2017.
With Bitcoin surpassing $70,000, could this present a buying opportunity for altcoins in the short term? Let’s take a look at the top 5 cryptocurrencies that appear strong based on the charts.
Bitcoin Price Analysis
On October 25th, sellers attempted to push Bitcoin below the 20-day exponential moving average ($66,201), but the bulls held their ground. This indicates positive sentiment and shows that traders are buying the dips.
To signal the resumption of the upward movement towards the top of the range at $73,777, buyers will need to push the price above $69,550. Although there is resistance at $70,000, it is likely to be surpassed. The BTC/USDT pair could reach $72,000, where significant resistance from bears is expected.
On the downside, if the price breaks and closes below $65,000, the bears will gain control. In that case, the pair could slide to the 50-day simple moving average ($63,259) and then to the crucial support at $60,000.
The 4-hour chart shows that the moving averages have flattened out and the relative strength index (RSI) is slightly above the midpoint, indicating a balance between supply and demand.
Buyers will need to push the price above the downtrend line to show strength. If they succeed, the pair could rally to $70,000. Conversely, if the price breaks and closes below $66,500, the advantage will shift in favor of the bears. The pair may then decline to $65,000, which remains a key level to watch. If this support is broken, the pair may drop to $62,000.
Solana Price Analysis
Solana (SOL) broke out of an ascending triangle pattern on October 20th, and the bulls successfully defended the retest of the breakout level on October 25th.
The upsloping moving averages and the RSI above 65 indicate that the bulls are in control. There is minor resistance at $179, but if this level is surpassed, the SOL/USDT pair could rally to $189. However, sellers are expected to strongly defend the $189 level, as a breakdown could lead to a further decline to $210.
To prevent an upward movement, bears will need to quickly push the price below the 20-day EMA ($161). If they succeed, the pair may drop to the 50-day SMA ($148).
On the 4-hour chart, buyers have pushed the price above the 20-EMA, but negative divergence on the RSI suggests a slowdown in momentum. The bears will try to stop the recovery at $179. If the price turns down from the resistance and breaks below the 20-EMA, it will indicate bearish activity at higher levels. In that case, the pair may retest the $164 support.
However, if the bulls break above the $179 resistance, it will signal a continuation of the uptrend, with the pair potentially rallying to $189.
Dogecoin Token Price Analysis
Dogecoin (DOGE) broke out of a symmetrical triangle pattern on October 18th, and the bulls successfully defended the pullback to the breakout level on October 25th.
The upsloping 20-day EMA ($0.13) and the RSI in the positive zone indicate that the bulls are in control. If buyers can push and maintain the price above the $0.15 resistance, the DOGE/USDT pair could surge to $0.17 and later to $0.19.
If the price turns down from the current level or the overhead resistance and re-enters the triangle, it will suggest that the breakout has been rejected. The pair could then decline to the 50-day SMA ($0.11).
On the 4-hour chart, buyers have pushed the price above the resistance line of the descending channel pattern, signaling a potential trend change in the short term. The pair will next attempt to rally above the overhead resistance of $0.15.
The 20-EMA is the key support level to watch on the downside. If the price turns down and breaks below the 20-EMA, it will suggest that the breakout from the channel may have been a false breakout. The pair could then dip to the channel’s support line.
THORChain Price Analysis
THORChain (RUNE) has formed a symmetrical triangle pattern, which typically acts as a continuation pattern. The trend that was in place before the pattern formed usually resumes after a breakout.
The upsloping 20-day EMA ($5.04) and the RSI just above the midpoint indicate a slight advantage for the bulls. A breakout and close above the triangle will signal the start of the next leg of the uptrend, with the RUNE/USDT pair potentially rising to $5.71 and later to the pattern target of $6.76.
This positive view will be invalidated if the price turns down and breaks below the triangle. In that case, the pair may decline to $4.42 and then to $3.80.
On the 4-hour chart, the bulls have pushed the price above the moving averages, and the RSI has risen into positive territory, indicating their upper hand. The price could reach the resistance line, where bears are expected to provide strong resistance. However, if the bulls prevail, the pair may start a new upward movement.
Conversely, if the price sharply turns down from the resistance line, it will signal that the pair may remain within the triangle for a while longer. The bears will be in control if the pair breaks below the support line.
Bitget Token Price Analysis
Bitget Token (BGB) has been gradually climbing in recent days, indicating that the bulls are in control.
The price was rejected from the $1.22 overhead resistance on October 24th, but the bulls prevented it from falling below the 20-day EMA ($1.12). Buyers will attempt to push the price above the overhead resistance again. If they succeed, the BGB/USDT pair could rally to $1.34 and later to $1.43.
This bullish view will be invalidated if the price turns down and breaks below the 20-day EMA. In that case, it will signal profit-taking by the bulls, and the pair may decline to the 50-day SMA ($1.03).
On the 4-hour chart, the 20-EMA is flattening out, and the RSI is just below the midpoint, indicating a possible range-bound action in the near term. If the price falls below the 50-SMA, the pair may drop to $1.14. A strong bounce from the $1.14 level will indicate buying at lower levels, and the pair may trade between $1.14 and $1.21 for some time.
However, a break below $1.14 will indicate that the bears are gaining control. The pair may then drop to $1.12 and later to $1.09.
Please note that this article does not provide investment advice or recommendations. Trading and investing in cryptocurrencies carries risk, and readers should conduct their own research before making any decisions.